Netflix revenue up 22.8% thanks to international subscribers

Netflix added 5.6 million online subscribers in the fourth quarter, beating analysts' expectations as international growth made up for slower domestic gains.

Profit fell to 10 cents a share, the world’s largest paid online TV network said on its website, the result of spending on programming and efforts to sign up new customers. Analysts were forecasting 2 cents.

Netflix, whose popular series include Unbreakable Kimmy Schmidt and Making a Murderer, said revenue rose to $1.82 billion (€1.67 billion) from $1.48 billion a year earlier.

International gains eased investor concern about the company’s slowing US growth.

New countries

Netflix must add customers at a steady rate to pay for its growing programming obligations, which will total $5 billion this year. On January 6th, service started in 130 new countries, leaving China as the last major market without Netflix.

US domestic subscribers increased by 1.56 million, compared with the 1.62 million average of eight estimates. In the first quarter, Netflix expects to add 1.75 million.

International customers grew by 4.04 million, versus the 3.5 million seen by analysts. This quarter the company forecasts the addition of 4.35 million. Streaming revenue in the first quarter will total $1.81 billion, Netflix said.

Analysts had forecast the company would add 5.12 million subscribers overall in the fourth quarter, reaching a total of 74.3 million. The company closed the period with 74.8 million.

Netflix shares rose 9.1 per cent to $117.67 in extended trading after results were announced. The stock gained 3.7 per cent to $107.89 at the close in New York. – (Bloomberg/Reuters)